Sabien Technology Group (AIM:SNT) shares soared 45.5% to 4p after it announced that a Strategic Investment and Financing Framework announced on 21 May will no longer proceed.
The company, which develops the M2G intelligent boiler optimisation platform, said the scrapped framework included a senior secured convertible loan note of up to £2 million with associated warrants, alongside a proposed acquisition of Executive Chairman Richard Parris's shareholding by a strategic investor group.
That share sale was a secondary transaction, meaning proceeds would have gone to selling shareholders rather than the company itself.
Parris Group will retain its existing stake and continues to provide financial support under existing arrangements, with no new binding funding commitment in place.
Separately, Sabien remains in "constructive" talks with Haydale and SaveMoneyCutCarbon over a UK distribution and implementation agreement for M2G, with detailed contractual proposals exchanged but no binding terms agreed.
"Our discussions with SMCC remain constructive and the opportunity to strengthen the route to market for M2G is clear," Parris said.
The company confirmed the SMCC talks are not conditional on the now-abandoned financing framework or any transfer of the Parris Group shareholding.
Sabien is also preserving its economic interests in the City Oil Field opportunity through its stake in b.grn Group, which is funding related operating expenditure, leaving Sabien with no current cash commitment.
The company will update the market when a definitive SMCC agreement, if any, is executed.
News Intelligence what this means for the company
Sabien has abandoned a £2 million financing framework announced in May, which would have brought in a senior secured convertible loan and facilitated a secondary share sale by Executive Chairman Richard Parris. The company says talks with SaveMoneyCutCarbon over a distribution agreement for its M2G boiler platform remain constructive, and that those talks are independent of the scrapped financing deal. Parris Group will continue supporting the company under existing arrangements, but no new binding funding commitment replaces the abandoned framework.
The loss of the £2 million financing option narrows near-term funding flexibility, though Sabien retains support from Parris Group and has no current cash commitment to its b.grn City Oil Field stake. The outcome of SMCC talks will be material to the company's route to market for M2G, but no binding agreement has been reached.
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